Market stages trend reversal, ends in the negative zone; CIL falls

18 April 2017

3:30 pm Market at Close: Equity benchmarks had a trend reversal during the day and ended on a negative note. The Sensex had gained over 250 points, but has ended in the red.

The Sensex was down 94.56 points at 29319.10, while the Nifty was down 34.15 points at 9105.15. The market breadth was negative as 1,111 shares advanced against a decline of 1,778 shares, while 142 shares were unchanged.

The 30-share BSE Sensex was down 115.93 points at 29,297.73 and the 50-share NSE Nifty fell 43.35 points to 9,095.95.

3:21 pm Europe trade: Bourses in Europe extended losses as tensions between North Korea and the US intensified and European monitors criticised Turkey's referendum. France's CAC and Britain's FTSE fell 1 percent each while Germany's DAX was down 0.6 percent.

3:19 pm Capex: State-run SAIL has so far spent a total of Rs 64,562 crore on modernisation and expansion programmes, which also includes Rs 2,324 crore investment in first nine months of the last fiscal.

"Cumulative expenditure (by SAIL) for various modernisation and expansion packages till December 2016 has been Rs 64,562 crore, including expenditure of Rs 2,324 crore during the financial year 2016-17 till December 2016," according to a latest government report.

Steel Authority of India Ltd (SAIL) has undertaken the modernisation and expansion of its integrated steel plants at Bhilai, Bokaro, Rourkela, Durgapur and Burnpur and special steel plant at Salem.

"Due to severe drought conditions and drying of perennial rivers prevailing in Tamil Nadu, the District Revenue officials have advised us to restrict drawal of water from river Cauvery for drinking water purposes only," the company said in its filing.

Seshasayee has appealed to the Revenue officials to permit minimum quantity of water to maintain safe working conditions.

"... has received letter of intent (LOI) from SDSC-SHAR (Satish Dhawan Space Centre, Sriharikota) for establishing Di-nitrogen tetroxide (N2O4) production plant on build, own, operate & supply model," the company said in its filing.

Project will be set-up at NFL Vijaipur plant in Madhya Pradesh. The plant capacity will be around 1095 MT N2O4 per annum and product (N2O4) will be exclusively supplied to SDSC-SHAR under long term agreement for 25 years period.

National Fertilizers says project activities will start around July 2017 with a gestation period of 18 months and estimated capex requirement will be around Rs 350 crore.

The company has issued commercial papers of Rs 100 crore on April 18, 2017. The tenure of instrument is 63 days, Jubilant Life Sciences said in a BSE filing.

The company however did not specify what it planned to do with the money raised.

"The coupon/interest offered is 6.49 per cent per annum," it added.

2:08 pm Market Check: Equity benchmarks as well as broader markets were off day's high in afternoon as banking & financials and energy stocks trimmed gains.

The 30-share BSE Sensex was up 98.50 points at 29,512.16 and the 50-share NSE Nifty gained 26.10 points at 9,165.40.

2:00 pm Interview: Unfazed by the possible changes to the H1-B visa regime, CEO of India's IT major TCS Rajesh Gopinathan has said the current discourse on the issue in the US is driven by emotions rather than economy and the best way to tackle it is through greater engagement.

Gopinathan favoured a policy of engagement with various stake holders on the issue of H-1B visas in the US. He noted that the discourse is currently driven by emotions rather than economy.

"The best way to tackle that is greater engagement. Because the way, sometimes, companies like us get characterised is very different from the reality of what we bring to the table," Gopinathan, who is in his mid-40s, said.

1:39 pm Expert Speak: Market valuation still at comfortable levels but the job of picking stock has become tougher, said Raamdeo Agrawal, Joint MD, Motilal Oswal Financial Services in an interview with CNBC-TV18.

1:20 pm Market Check: Benchmark indices lost some of its morning gains, with the Sensex falling over a hundred points.

The Sensex was up 121.64 points at 29535.30, while the Nifty was up 31.35 points at 9170.65. The market breadth was positive, but narrow, as 1,601 shares advanced against a decline of 1,110 shares, while 158 shares are unchanged.

ICICI Bank, Adani Ports, Aurobindo Pharma and Hindalco were top gainers, while Coal India, Sun Pharma and Ambuja Cements lost the most.

The pharma company has received the establishment inspection report from the US Food & Drug Administration based on successful inspection of the formulation manufacturing facility located in Kancheepuram, Tamil Nadu.

The facility was inspected by USFDA in December 2016.

12:51 pm InVIT: With Sebi allowing mutual funds, insurance companies and banks to invest in the financial instrument, the race to be the first listed InVIT is heating up. The first InVIT is likely to be launched in April.

"NBCC and Bolix, S.A. Poland signed a memorandum of business exploration at New Delhi, in furtherance of a joint initiative to bring to ETICS, a proven solution for improving energy performance of temperature controlled buildings," company said in release.

The public sector entity was in the news recently after the coal quality watchdog-Coal Controllers Organisation-downgraded its coal grades in 177 mines of the firm.

Post these developments, two major analysts have now given out a subdued view on the stock. Read the full report.

11:15 am Market Check: Benchmark indices held on to the extended gains, amid a surge in midcaps and the Bank Nifty.

The Sensex was up 264.81 points at 29678.47, while the Nifty was up 74.65 points at 9213.95. The market breadth was healthy as 1,750 shares advanced against a decline of 664 shares, while 111 shares were unchanged.

Adani Ports, ICICI Bank and Hindalco were top gainers on both the indices, while Coal India and Bharti Airtel lost the most.

11:00 am Macquarie bullish on OMCs: Macquarie Research turned bullish on oil marketing companies as it has initiated coverage with an outperform rating on HPCL, BPCL and IOC and with a bull case target upside of 45-65 percent in one year.

In case of IOC, the brokerage house feels company's earnings power is underappreciated as it expects earnings to show a 19 percent CAGR over the next three years, adjusted for inventory impacts, higher than consensus forecast 10 percent growth.

The IPO proceeds will be utilised for working capital requirements, purchase of capital assets (system formwork) and for general corporate purposes.

Construction company Capacit'e Infraprojects focusses on residential, commercial and institutional buildings, with an order book of over Rs 4,000 crore as on January 31, 2017 comprising 51 ongoing projects.

The company's consolidated revenue from operations grew from Rs 2,14.26 crore for fiscal 2014 to Rs 853.29 crore for fiscal 2016 and Rs 8,47.37 crore for the nine month period ended December 31, 2016.

The 30-share BSE Sensex was up 278.55 points or 0.95 percent at 29,692.21 and the 50-share NSE Nifty gained 77.20 points at 9,216.50.

The broader markets also traded in line with benchmarks as the Nifty Midcap and Smallcap indices rallied 1 percent each on strong breadth. More than three shares advanced for every share falling on the exchange.

ICICI Bank was the leading contributor to Sensex' gains, up 2.6 percent followed by ITC, Reliance Industries, HDFC Bank, HDFC, SBI and Infosys.

9:40 am Market Cap: Reliance Industries became the most valued company in terms of market capitalisation today, surpassing IT major TCS.

Both Reliance Industries as well as TCS were trading with more than Rs 4.5 lakh crore market cap.

The beginning of Jio revenue from current financial year could be main reason that driving stock above Rs 1,400 level.